Wall St. Brief: Facebook Earnings ON DECK, Alcatel-Lucent SLASHES Jobs
Facebook (NASDAQ:FB), Amazon (NASDAQ:AMZN) and Starbucks (NASDAQ:SBUX) will all report earnings after the bell today. Facebook is expected to announce a second quarter earnings per share of $0.12 with revenues of $1.15 billion; Amazon’s second quarter earnings per share has been estimated to fall to $0.02 from $0.41 while revenue is expected to rise 30 percent to $12.89 billion. For Starbucks, its fiscal quarter three earnings per share is expected to increase to $0.45 from $0.36 with revenue rising 13.6 percent to $3.33 billion.
United Technologies (NYSE:UTX) will sell its Hamilton Sundstrand industrial products businesses for $3.4 billion to BC Partners and The Carlyle Group (NYSE:CG). United Technologies’ sale comes from a plan to repay a segment of its short-term debt from financing its $16.5 billion Goodrich Corporation acquisition.
Western Digital’s (NYSE:WDC) fiscal fourth quarter earnings crushed analyst estimates as net profit jumped almost five times to $745 million or $2.87 a share; this came from its $3.9 billion Hitachi Global Storage Technologies acquisition. Revenue almost increased two times to $4.75 billion. Western Digital gave its 2013 guidance higher than consensus, exemplifying its recovery from the Thai floods.
Alcatel-Lucent (NYSE:ALU) will cut an additional 5,000 jobs (around 6 percent of staff) in an effort to save an additional EUR 750 million. The action comes after Alcatel-Lucent incurred a second quarter loss of EUR 254 million, down from the previous year’s EUR 43 million profit. Revenue declined 7.1 percent to EUR 3.55 billion, affected by large declines in cellular spending both in North America and Western Europe.
Microsoft Outlook’s (NASDAQ:MSFT) upcoming version of Office 2013 will include a LinkedIn (NYSE:LNKD) integration. This should advance LinkedIn’s dominance in professional social networking and could help them if they decide to introduce a private networking solution as a competitor to Jive (NASDAQ:JIVE) and Microsoft’s Yammer.